Executive Summary

Introduction

Logistics sector primarily deals in transportation and storage operations and is significantly aided
by logistics services

Logistics Services - Segmentation

Courier - Introduction

Freight Forwarding - Introduction

3PL - Introduction

Reverse Logistics - Introduction

Evolution

Evolution of Courier Services

Evolution of the Freight Forwarder

Evolution of 3PL Services

Evolution of Reverse Logistics

Market Overview

The logistics market is growing at a CAGR of 18% of which 16% is comprised by Services segment

Logistics service market is projected to grow at a CAGR of 15% with reverse logistics growing at
the highest rate

Market Attractiveness

Courier Market

Growing business opportunities in India is driving the need for time bound service

Courier companies deal majorly in commercial goods and largest share of operation accruesfrom
domestic market

Surface mode of transport rules over air mode for transportation of deliverables

Sectoral dependence on courier service for accelerated same-day or less than 24 hours delivery
regularly

Courier being highly regulated has strict guidelines for prohibited items in Indian market

Freight Forwarding Market

Freight Forwarding Market - India

India is expected to witness considerable growth in freight business by 2020 compared to the
European countries

Freight forwarding is emerging as the businesses with high market attractiveness

Elements considered by shippers while selecting a mode of transportation

Third party logistics (3PL) Market

Third party logistics is fast gaining popularity in the Indian logistics market

Cost considerations are the major reasons for the outsourcing of various logistics services

3PL Market Presence in India

3PL Market Insights

Reverse Logistics Market

Reverse logistics market is on a gradual growth path with manufacturers realizing its significance

Reverse logistics is currently experiencing a strong demand from Southern India followed by
Western India

Reverse Logistics scope of cost reduction makes it a profitable venture for sectors facing bulk
returns

Advantages of Services

Courier is differentiated from normal postal service by the speedy delivery service offered

Freight forwarders' exhaustive understanding of transport business ensures cost effectiveness for
its clients

Outsourcing logistics services to third parties reduces burden of business extensively

Reverse Logistics involves complicated procedure of returns management

Reverse flow of goods is beneficial in addressing complicated returns management of business

houses

that help them garner more business as they can fulfill customer demands effectively

Segments & Features

Courier Service Segmentation

Freight Forwarding - Segments, Services & Benefits

Freight Forwarding - Key Characteristics

3PL Providers - Types Based on their Functions

Reverse Logistics - Types of Service Providers

Distribution Channel

Courier Service - Distribution Channel

Freight Forwarding - Distribution Channel

3PL - Distribution Channel

Reverse Logistics - Distribution Channel

Role of Regulatory Bodies

Role of Government: Summary

The Indian Government has been operating postal and telegraph service through India Post since
1837

and has evolved over the years to provide fast and reliable service at par with other key players in
the market

The India Post has been providing service at a concise rate that comes within easy affordability of
masses

Indian government on behalf of India Post has been bringing in various infrastructural
developments to aid its service

India Post is striking deals for upscale of courier service and also for IT enablement to streamline
other services

Allowance of 100% FDI in courier industry is a major step on part of the Government of India

to scale up productivity and competitiveness in the sector

The India Post Office Amendment Bill has been in consideration for regulating the courier market

There has been liberalization of laws appending to the courier industry for increasing earning scope
of players

Express Industry Council of India (EICI) : Courier

Membership to EICI

EICI Recommendation to Indian Post Office (Amendment) Bill, 2006

The EICI has been taking initiatives to make amendments in the Bill

for expansion of courier business in India as well as other sectors related to it

EICI has been making effort to do away with annual fee deposit as it would hamper its business
significantly

United Nations Environment Programme (UNEP): Freight Forwarding

Standard Trading Conditions for Freight Forwarders

Drivers & Challenges

Drivers - Summary

Globalization has led to increase in demand for fast and secure transport of documents

and other tradable items that is provided by courier and freight forwarding

Courier enables speedy delivery of important documents and high value or sensitive goods

Global expansion of Indian pharmaceutical industry is driving the courier market in India

Indian gems and jewelry industry is also having a significant impact on the courier market in India

Growth in international trade is providing huge impetus to the demand for freight forwarding

Freight forwarding and 3PL in India has witnessed a significant growth due to robust economic
growth

Key economic indicators including 100% FDI in logistics shows a healthy economic outlook for
India

India is currently experiencing a tremendous upsurge in retail sector with rising personal disposable
income

Logistics plays a key role in retail sector due to rising number of malls in India

3PL providers need to customize their services and charge competitive rates to benefit from retail
boom in India

Growing competition in retail sector transcends the need of reverse logistics to handle returns and
store upgradation

E - tailing has revamped shopping experience by transforming it from a weekend to anytime activity

that is having a favorable impact on courier and reverse logistics sectors

Consumer electronics and durables is a segment that enjoys high demand due to technological
advancement

Shorter lifecycles is one of the key reasons for driving the need of forward

and reverse logistics in the electronics industry sector

Growing dependence on 3PL services from automobiles and auto components sector to facilitate
market growth

Automobile sector is dependant on logistics from manufacture to assembly of parts

Automobile sector bears almost 2%-3% of its operation cost on fulfilling its logistics needs

Growing privatization of financial sector is encouraging the courier sector immensely

The immense growth in telecom sector plays a beneficial role on the courier sector

that relies on courier for customer intimation of information

Traditional nature of Indians bring about seasonal growth in demand for courier service across the
nation

Post global slowdown freight forwarding companies have started to venture out into high end
logistics solutions

Freight companies will benefit from the considerable planned investments in transportation
infrastructure in India

Indian freight forwarding companies are now becoming competitive like their foreign counterparts

High cost of logistics will drive the demand for 3PL sector in India

Implementation of VAT will increase the efficiency of 3PL service providers in India

Government initiatives for infrastructure development aiding growth of 3PL services

Growing environmental concern has led the government to implement

strict regulations, non-compliance to which results in penalization for manufacturing companies

Product recalls are being addressed by manufacturers to maintain their customer base

Constant product innovation is driving the restocking showrooms with latest launched products

Awareness about depleting resources among manufacturers is driving them to incorporate easy
return policies

Indian pharmaceutical sector is growing at a phenomenal rate due to growing popularity of generics
segment

Pharma companies rely on logistics service providers for transport of highly environment sensitive
drugs

Reverse logistics has to handle complications entailing from economic, environmental and
regulatory aspects

Challenges - Summary

Below-standard infrastructure in India is hampering overall logistics business

Indian transport sector is facing tremendous drawback with respect to global standards

Courier service operators unable to tap the growing business in tier 2 cities due to faulty transport
facilities

Freight forwarding market which greatly caters to the EXIM trade is adversely affected due to poor
infrastructure

Poor and inadequate infrastructure acts as a major obstacle to growth of 3PL market in India

Disparity between the skill required and skill available leads to inefficiency in this sector

Lack in warehousing facilities is discouraging courier service providers in undertaking larger

consignments

Lengthy customs clearance with inadequate facilities at airports delays operation of courier service
providers

Freight forwarding market in India is primarily dominated by international players

Lack of trust and awareness exists among Indian shippers with regards to outsourcing logistics

High freight charges are cutting customer's pocket adversely affecting the freight forwarding market

Freight rates in India are zooming up owing to diesel price hike

Complexities in the freight forwarding operations poses major barrier for the forwarders

To sustain the rising growth trend, 3PL market needs to tackle the high inventory levels

Lack of trust and awareness is hampering the growth of 3PL sector

Greater stress on forward supply chain often makes manufacturers misjudge significance of
reverse logistics

Key Issues

Key Issues - Summary

e-Commerce setting up own delivery system to avoid the delays

and mismanagement of consignments by courier companies

Telecom service providers encouraging customers to subscribe for e-billing and e-payment options

Increased internet accessibility has a direct negative impact on courier of confidential documents

Key Issues - Summary

Freight rates in India are zooming up owing to fuel price instability

Unfavorable weather and safety issues also result in downfall of freight forwarding business

Key Issues - Summary

Lack of government initiative is a major drawback to freight forwarding along with

factors such as non-compliance of best practices and congestion in ports adds to the hiccups in the
business

Key Issues - Summary

Reverse logistics is plagued by mismanaged returns, high distribution cost and retailermanufacturer conflicts

Technology Adoption

Benefits of Technology Adoption

3PL is witnessing better productivity with rising investments in GPS, RFID, online analytics & new
supply chain tools

Enterprise Application

Communication Technology

Material Handling Technology

Identification Technology

Software Solution Providing Companies

Technology Adoption by Leading Players

Technology Adoption - Case Study

Greater use of technology have the potential to significantly improve operating efficiencies for the
Indian logistics sector

4S eTrans is widely being used to support the complex freight forwarding business models

Competitive Landscape

Major Players in Logistics Services in India

Public Players

Public: Domestic Company - Allcargo Logistics Ltd

Public: Domestic Company - Aqua Logistics Ltd

(Table) Key Ratios

Public: Domestic Company - Transport Corporation of India Ltd

(Table) Key Ratios

Public: Domestic Company - Gati Ltd

(Table) Key Ratios

Public: Domestic Company - Gateway Distriparks Ltd

(Table) Key Ratios

Public: Domestic Company - Blue Dart Express Ltd

(Table) Key Ratios

(Table) Key Ratios

Private Players

Private: Foreign Company - Agility Logistics Pvt. Ltd

Private: Foreign Company - Aramex India Pvt. Ltd

(Table) Key Ratios

(Table) Key Ratios

Private: Foreign Company - Bertling Logistics India Pvt. Ltd

(Table) Key Ratios

Private: Domestic Company - Central Warehousing Corporation

Private: Domestic Company - Continental Carriers Pvt. Ltd

(Table) Key Ratios

Private: Domestic Company - Cosme Matias Menezes Logistics Pvt. Ltd

Private: Domestic Company - Darcl Logistics Ltd

(Table) Key Ratios

Private: Domestic Company - Expressit Logistics Worldwide Ltd

(Table) Key Ratios

Private: Domestic Company - Express Kargo Forwarders Pvt. Ltd

(Table) Key Ratios

Private: Domestic - DTDC Courier and Cargo Ltd

(Table) Key Ratios

Private: Domestic - Drive India Enterprises Solutions Ltd

(Table) Key Ratios

Private: Foreign - DHL Logistics Pvt. Ltd

(Table) Key Ratios

Private: Foreign - DHL Worldwide Express (India) P. Ltd

(Table) Key Ratios

(Table) Key Ratios

Private: Foreign Company - FedEx Express Services (India) Pvt. Ltd

(Table) Key Ratios

Private: Foreign Company - FedEx Express Transportation and Supply Chain Services (India) Pvt.
Ltd

Private: Domestic Company - First Flight Couriers Ltd.

(Table) Key Ratios

Private: Domestic Company - Flyjac Logistics Pvt. Ltd

(Table) Key Ratios

Private: Domestic Company - Food Corporation of India

Private: Domestic Company - Future Supply Chain Solutions Ltd

Private: Domestic Company - Gati- Kintetsu Express Pvt. Ltd

(Table) Key Ratios

(Table) Key Ratios

Private: Domestic Company - GBR Freight Forwarders Pvt. Ltd

(Table) Key Ratios

Private: Domestic Company - Mehta Brothers Freight Forwarders Pvt. Ltd

Private: Foreign Company - Nippon Express (India) Pvt. Ltd

Private: Domestic Company - Om Freight Forwarders Pvt. Ltd

(Table) Key Ratios

Private: Foreign Company - Panalpina World Transport (India) Pvt. Ltd

(Table) Key Ratios

Private: Domestic Company - Overnite Express Ltd

(Table) Key Ratios

(Table) Key Ratios

Private: Domestic Company - Prakash Freight Movers Ltd

(Table) Key Ratios

Private: Domestic Company - Reliance Logistics Pvt. Ltd

Private: Foreign Company - Repair and Return Technology India Pvt. Ltd

Private: Domestic Company - Reverse Logistics Company Pvt. Ltd

(Table) Key Ratios

Private: Domestic Company - SAL Logistics Pvt. Ltd

(Table) Key Ratios

Private: Domestic Company - Safexpress Pvt. Ltd

(Table) Key Ratios

(Table) Key Ratios

Private: Foreign Company - Schenker India Pvt. Ltd

(Table) Key Ratios

Private: Foreign Company - Skynet Worldwide Express Pvt. Ltd

Private: Domestic Company - Synergy Express Carriers Pvt. Ltd

Private: Domestic Company - The Professional Couriers Pvt. Ltd

(Table) Key Ratios

(Table) Key Ratios

Private: Foreign Company - TNT India Pvt. Ltd

(Table) Key Ratios

Private: Domestic Company - Total Logistics (India) Pvt. Ltd

Private: Domestic Company - TVS Dynamic Global Freight Services Ltd

(Table) Key Ratios

Private: Foreign Company - UPS Jetair Express Pvt. Ltd

(Table) Key Ratios

Private: Domestic Company - TVS Logistics Services Ltd

(Table) Key Ratios

(Table) Key Ratios

Private: Foreign Company - UPS SCS (India) Pvt. Ltd.

(Table) KeyRatios